Gogo Inc (GOGO)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.45 | 1.83 | 2.39 | 7.47 | 4.99 | |
| DOH | days | 252.38 | 199.42 | 152.66 | 48.84 | 73.08 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.45
= 252.38
Gogo Inc's days of inventory on hand (DOH) has been showing a mixed trend over the past five years. From 2019 to 2021, the company experienced a steady increase in the number of days it takes to convert its inventory into sales, reaching a peak of 173.47 days by the end of 2023. This prolonged duration suggests that Gogo Inc may be facing challenges in managing its inventory efficiently, potentially leading to higher carrying costs and risks of obsolescence.
However, it is notable that there was a slight decrease in DOH from 2021 to 2022, indicating some improvement in inventory management practices. Nevertheless, the metric remained above 100 days throughout the period, signifying that Gogo Inc may still have excess inventory relative to its sales volume.
Overall, Gogo Inc's elevated days of inventory on hand over the years may warrant a closer look into its inventory control policies and supply chain management strategies to streamline operations and optimize working capital efficiency.
Peer comparison
Dec 31, 2023